FTC bans data broker from selling Americans’ location data

FTC bans data broker from selling Americans’ location data

January 9, 2024 at 03:37PM

The U.S. FTC banned data broker Outlogic, formerly X-Mode Social, from selling Americans’ sensitive location data. The move responds to data brokers exposing individuals’ location data revealing sensitive information. Outlogic lacked protocols to remove sensitive locations and sometimes failed to respect individuals’ opt-out preferences. The ban follows an August 2022 Biden executive order protecting patients’ privacy.

The U.S. Federal Trade Commission (FTC) has taken significant action against data broker Outlogic, formerly known as X-Mode Social, by banning the sale and sharing of Americans’ raw location data for tracking purposes. This is in response to the company’s practice of exposing individuals’ sensitive location data and selling it to numerous clients across various industries. The FTC’s complaint has highlighted Outlogic’s failure to respect user preferences and its inadequate disclosures regarding the use of location data. Additionally, the FTC’s Chair, Lina M. Khan, emphasized the importance of limiting firms’ tracking and use of sensitive information, particularly in the context of AI models. This regulatory action aligns with August 2022 Biden executive order that aims to safeguard access to reproductive health care services and protect patients’ privacy.

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